GE Hitachi Nuclear Energy Ltd and Westinghouse Electric Co plan to use India as a low-cost supplier of nuclear parts for export to the US and Europe, executives said Thursday. "We see India as a very good supply chain for us to supply our world market,' said Daniel Roderick, senior vice president at GE Hitachi Nuclear Energy, an alliance between General Electric Co and Japan's Hitachi Ltd based in Wilmington, NC.
The decision was driven by cost pressures both companies face as they prepare to build nuclear reactors in India, and it would not have been possible if the 45-nation Nuclear Suppliers Group had not lifted a three-decade global ban on nuclear trade with India last year. In order to keep costs low enough to supply cost-competitive power to India, GE Hitachi said it plans to localise up to 70 percent of production, while Westinghouse plans to use local manufacturing and labour for up to 80 percent of its India work.
Once that expertise is transferred, both firms plan to turn to their Indian partners to help meet global demand for nuclear reactor parts. GE Hitachi has signed co-operation agreements with three Indian companies: Larsen & Toubro Ltd, Bharat Heavy Electricals Ltd, and Bharat Forge Ltd Roderick also said GE Hitachi would begin hiring to expand its India operations in January.